If SB 948 makes its way through the labyrinth of political and regulatory committees then, gamblers, in addition to having access to Rhode Island sports betting, could have access to iGaming in the state starting in January of next year.
Bally’s Making the iGaming Push
The Senate bill proposed to bring online casino gambling to the smallest state in the union was promulgated by the President of the Senate, Dominick J. Ruggerio, and Rep. Gregory J. Costantino. And the company behind these political machinations is Rhode Island gaming giant, Bally’s, also the company operating the only two retail casinos in the state, Bally’s Twin River Lincoln and Bally’s Tiverton.
Because an online casino would have to be tethered to a brick-and-mortar casino, Bally’s is the logical choice. However, when it comes to online sportsbooks, Sportsbook Rhode Island is the only one in the state and it exists under the auspices of the Rhode Island Lottery in collaboration with IGT and William Hill as the platform and power behind the app.
But Bally’s is not only a player in the retail casino industry but in the online sports betting industry as well. They also have a presence in New Jersey with their mobile casino gaming platform. Thus, the company is not only based locally in Providence but has the requisite experience as a digital casino provider to bolster its argument that it is indeed the best and only choice to run the state’s iGaming platform.
Elizabeth Suever, vice president of government relations for Bally’s, said the company would employ its experience to help draft a comprehensive online gaming bill.
“We intend to model this after the legislation used to establish online sports betting in Rhode Island, effectively giving the State complete regulatory control and the ability to ensure the integrity of the program, while maximizing revenue for the State,” said Suever.
Power Brokers Behind Legislation
President of the Senate Dominick J. Ruggerio together with House Speaker K. Joseph Shekarchi said last week in front of the General Assembly:
“This legislation is a first step in the public review process around potential iGaming in Rhode Island. Our state casinos provide an important source of revenue to fund vital programs and investments that benefit all Rhode Islanders.
The companies that manage casino operations on behalf of the state have made significant investments to ensure they are well positioned to thrive in the years ahead, much of which was required under the legislation we sponsored known as the Marc A. Crisafulli Act.”
What Do We Know?
The iGaming legislation is expected to be similar to the sports betting bill which allows those 18 years of age and older to play. Moreover, there would likely be a 50% tax on virtual slots and 18% on table games.
A recent study by Spectrum Gaming suggested the following if online casino gambling were to be licensed and regulated in Rhode Island.
- An estimated $93.3 million of gross gaming revenue in the first year.
- An estimated $130.6 million in the fifth year.
- Potential gaming taxes for Rhode Island of $210 million over five years.
- The study doesn’t believe there will be any deleterious effect on the retail casinos in the state once mobile casino gaming goes live.
And it is the last of the bullet points above that concern many legislators but Bally’s said that studies indicate “little to no switching of play from retail casinos to online casino gaming is expected, preserving retail casino revenues paid to the state.”
*Bookmakers Review will continue to monitor this story and update our readers as events unfold.
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